Crypto Academy Week 14 - Homework Post for Professor @Pelon53
Hope we are all fine? Here is my homework given to me by @pelon53.
Penny cryptocurrency is created as a sound investment because some coin may die and no one will talk about them. According to coin market cap penny cryptocurrency account for more than 35% of the total cryptocurrency market.
Explain the Penny cryptocurrencies in your own words. Advantages and disadvantages.
What are penny cryptocurrency?
Penny cryptocurrency are cheap coin that trade below $1 and also, every coin that are recently lunched is considered a penny cryptocurrency. For example Bitcoin and Ether, are once a penny cryptocurrency because when they were first lunched their value was less than $1 before they become popular and coin everyone buy into. Another example is Dodgecoin, Dodgecoin is a penny cryptocurrency that was lunched recently.
To pinpoint on the meaning of penny cryptocurrency, penny cryptocurrency are cheap coin that is not up to $1. We can also call it a recent lunched coin that are trading under $1. Penny cryptocurrency Is a level that every popular coin like Bitcoin and Ethereum as passed and every new coin will also pass because a coin don't just start trading from $1,000. It is a gradual process.
Advantages of penny cryptocurrency
Penny cryptocurrency as some advantages but they can only come to pass if you choose the right coin because there are coin that are scam coin. So you choose carefully and also by making your own research.
Penny cryptocurrency can make it's investor a bigger of tomorrow.
It can give an unexpected wealth and sudden excitement.
It as very good investment that can turn small investment into much more and plenty of wealth.
Some penny cryptocurrency can make it big price move within days (Example; Dodgecoin) while some take years.
Penny cryptocurrency is very good to invest because it have a low market capitalization.
Disadvantages of penny cryptocurrency
Penny cryptocurrency also have Disadvantages the way it have Advantages. They are listed below.
It is a risky market
Penny cyptocurrency can give a shocking valuation Because When a penny cryptocurrency skyrockets quickly, the healthiest thing to do is to stay away, because in a short time a shock can come, dropping the price quickly. Says by Prof. @pelon53
Most of these cryptocurrencies may have sell out projects to make profit, which may later turn to an abandon project.
Some penny cryptocurrency are very thinly traded.
Volatility, If rapid and significant price moves are not great and you invested at the historical price of the coin, there is possiblity that the price of the coin will collapse.
For you: What will be the best Penny to invest in this 2021? Explain and show evidence.
If we should talk about the best penny cryptocurrency to invest in 2021, Dogecoin is an example of a penny cryptocurrency to invest in.
Dogecoin is a cryptocurrency that was created by software engineers Billy Markus and Jackson Palmer. It was introduced on December 6, 2013. It is a penny cryptocurrency because it is trading under $1.
Tradingview of Dogecoin till date
The screenshot aboove is taken from coinmarketcap showing the growth of Dogecoin for the last one year. Dogecoin price as been fluctuating since it was introduced but social media as really help dogecoin to gain more holders. Dodgecoin price shot up from $0.46 to $0.54, before reducing back to around $0.50 when Elon Musk ask is over 53million follower on Twitter that if Tesla should accept Dogecoin. Dogecoin as quickly developed its own online community and as also reach a market capitalization of US$85,314,347,523 on May 5, 2021.
Another screenshot above is screenshoted from coinmarketcap. It show the information about Dogecoin. Dogecoin is ranked 6th on coinmarketcap and it value keeps going up. The present value of Dogecoin is $0.03662 it as reduce but I believe it will shot back up because this is how Bitcoin started, it was goin up and down shocking it holders. it trading volume is more than 176,% in just 24h and other information the screenshot shows the possibility of how Dogecoin can increase.
Futhermore, Dogecoin is a good coin that I believe it value will go more higher in 2021. Presently we are in Bearish market all coin value are decreasing but I believe by the time we get to bullish market it will seriously shot up. The total market cap of Dogecoin during when I was doing my assignment is $45,586,417,586.37. this is how Bitcoin and Ether started and I believe dogecoin will be a rare gem for everyone holding it in there wallet. The penny cryptocurrency "Dogecoin" is present in best cryptocurrency exchange like Binance, Bitmex, Haobi and so on.
Do a Ripple (XRP) analysis. Show screenshots. Would you invest right now? Explain.
Ripple is a company that was first establish in 2012 and co-founded by Chris Larsen and Jed McCaleb. It a technology that act as cryptocurrency and also a digital payment network for transactions. Ripple is a company while XRP is a cryptocurrency token. Ripple is a company that is behind XRP because they work together.
We can see the above screenshot, it shows the company that that runs on Ripplenet. It's a system for payment settlement and also serve as a network for currency exchange that can process transaction around the word. Ripple is a remittance system that is like SWIFT system itcan be use for international money and security transfers that is used by financial middlemen dealing across currencies and banks. Whenever users make a transaction using ripple next they dicduct a small amount of XRP as a commission fee.
Ripple is ranked as the top 5 among the most valuable blockchain tokens by market cap. Ripple use a less energy for Transaction than Bitcoin. Ripple was once competing with Bitcoin because of the decentralisation, Bitcoin rely on decentralized system. Bitcoin is based and built on blockchain technology whole Ripple does not use blockchain but uses a distributor consensus ledger and using a network of validating server and cryptocurrency token call a XRP.
Let's pinpoint on the meaning of XRP, XRP is a token that is used on ripple network to facilitate transfer of money between different currencies. XRP is currency that is partly managed by Ripple. XRP can be sent to anywhere or from any digital wallet irrespective of international borders. It is also use for representing transfer value across Ripple network. Sometime user's refers to it as Ripple.
However, when XRP was first lunched in 2021, Ripple marketed XRP cheaper, faster as an alternative to Bitcoin because transactions settle in seconds. XRP's could archive this because it's infrastructure is centralized and not decentralized. It does not use proof of work and the consensus algorithm used by Bitcoin to precess transaction. But XRP transactions rely on a consensus protocol in order to validate account transactions and balances on the system. The general agreement works to improve the integrity of the system by preventing double-spending.
Ripple which is also reffers to as XRP, as per market size and capital September 2020, is the fourth-largest cryptocurrency after Bitcoin, Ethereum and USD Tether. The Ripple network now has billions of dollars’ worth of crypto on it's account. It's also the core owner of Ripple (XRP), the digital coin that increased its value 40 times in 2017 alone. On September 2013 when XRP was lunched, the value of XRP which is also known as Ripple worth 0.014 dollars but today which is May 20, 2021 the worth of XRP was $1.20 when I screenshoted the image above but shortly when I went back to check like few minute after is now $1.25. it as really increase compared to when it was created.
The Uses of Ripple (XRP)
Ripple which some people known as XRP uses are listed below.
Exchanging of currency -
This platform allow it user's to change currency with low commission fee. For Example: you can exchange your XRP with any other currency using ripple network.
International Transaction -
Ripple allow it user's to make transactions of assest to any part of the world with a record time of four to five seconds.
Payment Settlement -
Transaction confirmation are incredibly fast on Ripple network. So, it is use for fast settlement.
Payment Ecosystem -
It uses payment Ecosystem as it allow us to create our own currency.
Would you invest right now? Explain.
I would have love to invest but the only reason why i may not invest in XRP cryptocurrency is that it's centralization in respect of bank which make it risky because bank doesn't make transaction on blockchain they rely on a particular authority. It trasaction is not transparent and it can not really be trusted. Also the issue of SEC, XRP have issue with SEC which as not been fully resolved, it generate distrust in the community and the best way to reduce the disturst and for the price to shot up is for them to resolve the issue that makes SEC to sue them.
And even if I will invest, I will make sure I invest with an amount am capable of losing not the one that will shock me if I lose.
Present in detail a possible investment of 5 penny crypto assets. Explain and present data confirming your choice.
- Stellar (XLM):
Stellar (XLM) is a penny cryptocurrency that aims to quickly and securely transfer any currency between different countries in a cheap transaction in developing market. The Stellar blockchain is not created to be used as a direct payment method but the blockchain works as an intermediary or third party to convert currencies instantly. It uses a federated byzantine agreement (FBA) algorithm instead of a traditional mining network to validate transactions say coindesk. (XLM) is positioned #16 among cryptocurrencies according to coinmarketcap, with the value of $0.5118 with the Dominance of 0.65%.
Dogecoin which is also know as DOGE is a penny cryptocurrency wpresently a popular coin known by almost every trader or investor. It was introduced on December 6, 2013 created by software engineers Billy Markus and Jackson Palmer. Despite being created as a joke, it as recently won the heart of many people. For Example Elon Musk, Elon Musk is an investor and a celebrity who has over 53millon follower on Twitter. He as really serve as an instrument that makes the price of Dogecoin to Shot up.
Currently as at when I was doing my homework Dogecoin is value $0.3876 and also positioned #7 among the other cryptocurrency according to coinmarketcap. Dogecoin is a good currency you can invest into this year. And if you can notice this coin, it as a great increase of this year, over 79,555.620%.
- Tron (TRX)
TRON (TRX) is also a penny cryptocurrency, Increasing its value considerably in recent years. It was created as an idea of 26-year-old Justin Sun, a self-proclaimed protégé of Alibaba chief executive and billionaire Jack Ma. TRX of Tron Blockchain is positioned at #23 according to CoinMarketCap, this being one of the coins with the greatest projection for this year. Currently as at when I was doing my work Tron Price is $0.08783 and It has had an increase in recent years of 3,474.111%.
- Cardano (ADA)
Cardano (ADA) was founded in 2015 by Ethereum co-founder Charles Hoskinson. It's a community that are very focused on positive outcomes, embrace newcomers, and willingly share knowledge. it is independent of intermidiaries i.e it is decentralized and also open source with consensus achieved using proof of stake. It can process peer-to-peer transactions with its internal cryptocurrency Ada.
Cardano (ADA) was created to be a better than cryptocurrency like Bitcoon, Ethereum and so on. Cardano gives a lot of confidence as it is intended the operation of this new generation of blockchain after first and second generation. Cardano (ADA) is no more a penny cryptocurrency because it is above $1 but it is a good currency investment with a bright future. It's current price is #1.71 and it is ranked #5 among cryptocurrencies according to coinmarketcap.
- Shiba Inu (SHIB)
Shiba Inu (SHIB) is an Ethereum based Token. This year, it started absolutely nothing but it now one one the token that is increasing everyday. It is a good token with a great future. It was created by an anonymous person known as Ryoshi in August 2020. It is a token that was modeled after Dogecoin with market capitalization of over $6 billon as at May.
Shiba Inu (SHIB) was born from an experimental project. Currently the SHIB token, from Shiba Inu, has a value of $ 0.000009347, it's increasing everyday and it's also one of the token with a very high increase, over 5,509,962.671%.
Show an investment (starting at $ 5) that you have made this week in Penny cryptocurrencies. List the steps you took.
The next and the last question to answer now, is to show you how I purchase shib coin on Binance exchange (APP) using SHIB/USDT pair.
The first thing I did was, I added some coin (USDT) to the one in my Binance USDT wallet because I made my research and I saw that Shib coin will also be a good investment. As you can see the confirmation in the screenshot above.
In the above screenshot I clicked on market which took me to the screenshot below.
Here if you also want to buy, you can type any name of the coin you want to invest with a pair of your choice.
In the screenshot above I typed Shib coin in the search space with USDT pair, under spot. I clicked on it and it took me to the screenshot below
In this section, i clicked on buy and it took me to the screenshot below
Because I set my stop limit, it shows me when the coin i ordered is going to be in my wallet before I confirm the order, which we can see in the screenshot above.
The above screenshot shows us the order I open and here am still waiting for it to be fulfilled.
It is now showing in my wallet as you can see in the above screenshot
In conclusion, penny cryptocurrency is a good investment for investors if you the right coin to buy and please always put money you can afford to lose.
I'm so so very happy to participate in this homework and I also want to say a very big thank you to my [email protected] for this wonderful topic and also thank you to those that will be viewing my homework.